Pier 1 2010 Annual Report Download - page 45

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Pier 1 Imports, Inc.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended
2010 2009 2008
Cash flow from operating activities:
Net income (loss) $ 86,847 $ (129,253) $ (96,011)
Adjustments to reconcile to net cash (used in) provided by operating activities:
Depreciation and amortization 33,335 45,156 55,303
Loss (gain) on disposal of fixed assets 246 41 (2,137)
Loss on impairment of fixed assets and other long-lived assets - 9,653 5,030
Stock-based compensation expense 3,782 5,177 5,837
Deferred compensation 3,736 4,215 4,157
Lease termination expense 7,693 6,074 10,440
Amortization of deferred gains (7,777) (6,774) (2,533)
Gain on retirement of convertible bonds (49,654) - -
Charges related to the conversion of the 9% Convertible Notes 18,308 - -
Other 3,109 (2,201) 1,543
Change in cash from:
Inventories 2,835 95,378 (51,646)
Accounts receivable, prepaid expenses and other current assets 8,294 (5,055) (8,776)
Income tax receivable 1,588 14,486 25,616
Accounts payable and accrued expenses (26,537) (65,457) (22,818)
Income taxes payable 533 (1,620) 2,765
Defined benefit plan liabilities (1,784) (118) (6,351)
Make whole interest provision (13,782) - -
Other noncurrent assets (197) 1,209 762
Other noncurrent liabilities (20) (2,545) (4,255)
Net cash provided by (used in) operating activities 70,555 (31,634) (83,074)
Cash flow from investing activities:
Capital expenditures (5,246) (13,378) (7,153)
Proceeds from disposition of properties 730 102,478 5,674
Proceeds from sale of restricted investments 3,897 3,258 6,986
Purchase of restricted investments (3,654) (2,020) (589)
Collection of note receivable 1,500 1,500 1,500
Net cash (used in) provided by investing activities (2,773) 91,838 6,418
Cash flow from financing activities:
Proceeds from stock options exercised, stock purchase plan and other, net 333 2,161 3,909
Retirement of convertible bonds (31,593) - -
Debt issuance costs (4,408) - (998)
Net cash (used in) provided by financing activities (35,668) 2,161 2,911
Change in cash and cash equivalents 32,114 62,365 (73,745)
Cash and cash equivalents at beginning of period 155,798 93,433 167,178
Cash and cash equivalents at end of period $ 187,912 $ 155,798 $ 93,433
Supplemental cash flow information:
Interest paid (1) $ 20,557 $ 14,018 $ 15,743
Income taxes paid $ 1,962 $ 2,617 $ 1,124
(1) Interest paid in fiscal 2010 includes $13,782 in make-whole interest related to the conversion of the Company’s 9% Senior Convertible Notes due
2036. See Note 5 of the Notes to Consolidated Financial Statements for further information regarding this payment.
The accompanying notes are an integral part of these financial statements.
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